The Forum of Firms (FOF)- known by few, and yet, benefits us all
Blog by Bettina Cassegrain, HLB's Global Assurance LeaderHave you ever heard of the Forum of Firms? No? You are not alone, and yet, it is a remarkable organisation which has much to offer to networks and their affiliated members alike. Having just come back from our most recent event in Paris at the end of March, and being once again impressed by the calibre of speakers and our lively and fruitful discussions, it is time to shine the light on the FOF, an organisation which has remained under the radar far too long.
So, what is the FOF? The official website describes its objective as follows:
‘The objective of the Forum of Firms (Forum) is to promote consistent and high-quality standards of financial reporting and auditing practices worldwide. The Forum brings together firms that perform transnational audits and involves them more closely with the activities of the International Federation of Accountants (IFAC) in audit and other assurance-related areas.’
Networks and firms can apply for membership and are accepted once they have proven that they already carry out transnational audit engagements or have the intention of doing so, and that they comply with a list of audit quality-related criteria. At the moment, there are 34 members of the Forum of Firms, no affiliates. You might now say, and you would be right in doing so, that the description of the objective remains relatively vague unless you are one of the initiated few who represent their networks. Let us therefore explain in more practical terms what happens during FOF meetings.
We can divide activities into two large categories:
1: Providing a platform for discussion of audit-practice related issues between members
FOF leadership has worked relentlessly to create an environment where networks and firms which are normally competitors discuss topics openly and without the idea of competition in mind. The Forum is a safe zone built on mutual trust, where every member has ample opportunity to contribute, collaborate and ask questions. Once members embrace the idea of collaboration rather than rivalry and that united, we are stronger and better representatives of our profession, there are countless advantages for organisations such as HLB International (but we will come to that a little later).
2: Organising outreach activities so that members can interact with standard setters and other stakeholders
One of the key advantages of being a FOF member is the opportunity to engage directly with standard setters, oversight organisations and other key stakeholders in our ecosystem. There is no better way, especially for mid-tier networks, to be informed of upcoming changes, and, more importantly, to co-create the future of the profession by directly impacting what these changes might look like.
The HLB International perspective
HLB has been a member of the FOF and represented on the Transnational Auditors Committee (TAC - the executive arm of the Forum, and, therefore, the official link between the Forum and the International Federation of Accountants) for many years. The benefits have been numerous, but it is worth highlighting the following above all others:
Being the voice of the mid-tier
As indicated previously, one of the key objectives of the FOF is providing a platform for exchange and discussion. With this comes the opportunity to involve our subject matter experts as speakers to highlight our network’s areas of expertise. Recent involvement has been on cybersecurity, the upcoming standard for Less Complex Entities (LCE) and the new International Standards on Quality Management (ISQM). In more general terms, meeting with standard setters and other key stakeholders grants us a regular opportunity to fairly represent our member firms and be their mouthpiece.
Providing a superior service to our member firms
At the FOF, outreach happens on a very timely basis, ISQM being one recent example. The topic was first discussed in 2019 and as a result, we had plenty of time to devise our own network strategy, share tools and best practices with member firms and thus ensure that our member firms were well equipped and ready when the standards came into effect towards the end of 2022. The FOF delivers ongoing support by organising regular high-quality events and the positive impact on our network cannot be ignored.
In conclusion, the Forum of Firms and its leadership team are doing a magnificent job in highlighting the many strengths of our profession and the key role it occupies in society. Up to us to play our part in order to signal to stakeholders that the profession can be trusted and relied upon, and to future generations that it is an innovative, open-minded and forward looking profession we can be proud of.
